The following are types of ratios described in Chapter 14 that can be used to assess the financial performance of not-for-profit organizations:
A.Liquidity
B.Going concern
C.Capital structure
D.Program effectiveness
E.Efficiency
F.Leverage and debt coverage
G.Fund-raising ratio
H.Fund-raising efficiency
I.Investment performance
For each of the following performance indicators,indicate the type of ratio from the list above that best matches by placing the appropriate letter in the blank space next to the phrase.
_____1.Are earnings on investments on target?
_____ 2.What percentage of contributions remains after deducting the cost of raising the contributions?
_____ 3.Does the organization rely more on debt or net assets to finance its operations?
_____ 4.Is an appropriate amount spent on accomplishing the organization's program goals?
_____ 5.Are revenues sufficient to cover expenses?
A. Liquidity
B. Going concern
C. Capital structure
D. Program effectiveness
E. Efficiency
Correct Answer:
Verified
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